New Data Show Anthropic, OpenAI and Other Upstarts Are Eating into Software Budgets
Source: The Information (opens in a new tab) · Laura Bratton
Intel Summary
Data from procurement software firm Zip, reported by The Information, shows enterprise spending on AI providers including OpenAI, Anthropic, Cursor, and Sierra grew from 1.4% to 8% of customer software budgets over the 12 months ending in August. The analysis covered dozens of mid-to-large companies averaging 2,400 employees and representing $18 billion in total software spend, while overall median software budgets rose 13%.
Why It Matters
Provides empirical evidence that enterprises are actively reallocating software budgets toward standalone generative AI vendors and coding/agent tools. This shift signals growing procurement share for AI upstarts relative to traditional enterprise SaaS platforms.
Part of an ongoing development
SourceZip reports AI startups capture 8% of enterprise software budgets
Data from procurement software firm Zip, reported by The Information, shows enterprise spending on AI providers including OpenAI, Anthropic, Cursor, and Sierra grew from 1.4% to 8% of customer software budgets over the 12 months ending in August. The analysis covered dozens of mid-to-large companies averaging 2,400 employees and representing $18 billion in total software spend, while overall median software budgets rose 13%. Claims are as reported; this summary makes no determination about accuracy or significance.
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